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Question 20
1.
If the Debt/Equity Ratio is 0.50. What is the Debt Ratio?
Answer
0.50
0.375
0.60
1
o.3333
Question 21
If the Debt/Equity Ratio is 0.60. What is the Debt Ratio?
Answer
0.40
0.375
0.60
1
o.4444
Question 22
Toast and Butter, Inc., has total assets of $712,000 and an equity multiplier of 1.6. What is the debt-equity ratio?
Answer
0.60
0.67
0.63
1.60
1.67
Question 23
If Roten, Inc., has a equity multiplier of 1.75, total asset turnover of 1.30, and profit margin of 8.5 percent, what is the return on equity (ROE)?
Answer
19.34%
2.275%
1.75%
14.875%
Question 24
Smith Corporation has current assets of $11,400, inventories of $4,000, and a current ratio of 2.6. What is Smith s acid test ratio? Assume pre-paid expenses is zero.
Answer
1.69
0.54
0.74
1.35
Question 25
If the Debt/Equity Ratio is 0.80. What is the Debt Ratio?
Answer
0.40
0.375
0.60
1
o.4444
Question 26
XYZ has total sales of $201, assets of $116, return on equity of 34%, and net profit margin of 5%. What is the amount of equity?
Enter you answer rounded off to two decimal points. Do not enter $ in the answer box.
Answer
Question 27
Top Sound, Inc., has total assets of $212,000, a debt-equity ratio of .6, and net income of $9,500. What is the return on equity?
Answer
6.87 percent
7.17 percent
7.34 percent
7.50 percent
7.67 percent
Question 28
ABC earned a net profit margin of 6.3% last year and had an equity multiplier of 2.8. If its total assets are $87 million and its sales are 189 million, what is the firm’s return on equity?
Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box.
Answer
Question 29
1.
A firm has total assets of $682,000 and total equity of $424,000. What is the debt-equity ratio?
Answer
1.61
0.61
1.64
0.62
Question 30
A firm has net working capital of $1,100 and current liabilities of $2,800. What is the current ratio?
Answer
.98
2.56
.39
.72
1.39
Question 31
Wexford Hotels has sales of $289,600, depreciation of $21,400, interest of $1,300, Operating Income of $23,269.70, and a tax rate of 34 percent. What is the times interest earned ratio?
Answer
20
17.9
18.5
16
19.8